Satyam Saga Part II
And the plot thickens.
Was money siphoned out ? Anybodies guess. A large scale fraud executed with the connivance of top honchos inside the firm and a big 4 audit firm PriceWaterhouseCoopers playing active supporter.
Padding up inventory, inflating assets & accounts receivable are one way of window dressing. The other known option is accounts payable and slightly understating other creditors / accounts payable. These practises are difficult to nab and easy to reverse.But the game Satyam played involves cash / bank balances and accrued interest. Its beyond the comprehension of even a mundane fin guy like to understand how is this possible. Bank statements are irrefutable documents and cant be fooled around with - at least so I thought. But Satyam seems to have managed even this. So blatant is their misstatements that even a basic accountant can figure out the gross errors in a public company where detailed statements are freely available.
Nothing could be more flagrant.
Now was funds syphoned out ? Possible. Quite possible. Only a thorough investigation by RoC can reveal the fact and the extent.
But why take money out ? Does not add up.
At Satyam there seems to be no truth expect in the name.
Two class action suits already filed in US where Satyam ADRs are listed. Severe cash crunch. Citibank and others frozen the accounts chocking inflows. All the makings of an implosion. At the moment looks clear Satyam will grind to a halt before the financial year ending except for a government intervention.
The IT industry got recognition for India and led a strong economic growth since Y2K. But this is disgraceful. Satyam had won accolades for corporate governance but this is the ultimate shame.
Shame on Satyam, the IT industry and India as a whole.
And now where is Ramalinga Raju ?
Is not leadership about leading from the front ? In hiding he only adds credence to all rumours. If he were a true leader he should come upfront take all the blame and save the remains what little of it. This is his hour of reckoning and this man is in hiding.
Nothing could be handled worse.
Was money siphoned out ? Anybodies guess. A large scale fraud executed with the connivance of top honchos inside the firm and a big 4 audit firm PriceWaterhouseCoopers playing active supporter.
Padding up inventory, inflating assets & accounts receivable are one way of window dressing. The other known option is accounts payable and slightly understating other creditors / accounts payable. These practises are difficult to nab and easy to reverse.But the game Satyam played involves cash / bank balances and accrued interest. Its beyond the comprehension of even a mundane fin guy like to understand how is this possible. Bank statements are irrefutable documents and cant be fooled around with - at least so I thought. But Satyam seems to have managed even this. So blatant is their misstatements that even a basic accountant can figure out the gross errors in a public company where detailed statements are freely available.
Nothing could be more flagrant.
Now was funds syphoned out ? Possible. Quite possible. Only a thorough investigation by RoC can reveal the fact and the extent.
But why take money out ? Does not add up.
At Satyam there seems to be no truth expect in the name.
Two class action suits already filed in US where Satyam ADRs are listed. Severe cash crunch. Citibank and others frozen the accounts chocking inflows. All the makings of an implosion. At the moment looks clear Satyam will grind to a halt before the financial year ending except for a government intervention.
The IT industry got recognition for India and led a strong economic growth since Y2K. But this is disgraceful. Satyam had won accolades for corporate governance but this is the ultimate shame.
Shame on Satyam, the IT industry and India as a whole.
And now where is Ramalinga Raju ?
Is not leadership about leading from the front ? In hiding he only adds credence to all rumours. If he were a true leader he should come upfront take all the blame and save the remains what little of it. This is his hour of reckoning and this man is in hiding.
Nothing could be handled worse.
posted by YesYes at
9:12 AM
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